IntroductionThis assignment is conducted through secondary research, intended for the purpose of analysing Tesco Plc financial statements. Comparing the organisation with one of their main competitors within the business sector, namely J Sainsbury Plc. This analysis bases on the company’s latest annual reports.

I will do so by evaluating the following statements

The performances by looking at the results for year ended 23rd of February 2013 and compare it with previous years financial statements.

By conducting a comparison between the latest results shown by Tesco’s annual report as well as one of their main competitors, specifically J Sainsbury Plc.

Tesco Plc Year on Year Result

Profitability & Efficiency
For more details about the ratio calculations for year on year, the information will be provided in Appendix 1.

The prime ratio of return on Capital Employed (ROCE) shows a return of 12.7% for year ended 23rd of February 2013, which is a decreased return compared to 14.7% in their previous year. The decreased return is a reflection from their trading profit performance.

This declined Return on Capital Employed (ROCE) is mainly due to the following data: The regression of Tesco Plc’s operating Margin, which declined from 6.54% in 2012 to 3.38% in the financial year of 2013 (Profitability). Their improvement in its Use of Assets Ratio decreased from £1.31 per £1 of investment in 2012 to £1.28 per £1 of investment in 2013 (Efficiency).

In 2013 Tesco recorded a decrease in its Net Margin, which reflected due to the reduced Gross Margin. Their Gross Margin declined from 8.44% in 2012 to 6.31% in 2013. It could be explained due to the higher increase of cost of sales by 3.79% than the increase of sales revenue of 1.42%. These higher costs of sales may be due to higher expenses of transportation, higher costs of raw materials and increased labouring expense.

Tesco’s turnover per £1 of investment in total assets has decreased from £1.31 in 2012 to £1.28 in 2013. The total fixed assets in 2013 has decreased compare to 2012, however the turnover has grown from £m 63,916 (2012) to £m 64,826 (2013). This data explains that the company even without increasing the fixed assets has managed to increase its turnover.

Tesco’s productivity of working capital in 2013 has improved from 1.93:1 (2012) to 2.12:1 (2013), on the subject of the stock turnover rate, which was 22.44 days in 2012 and 22.5 days in 2013. It is essential to notice an increase in debtors turnover rate from 24.06 in 2012 to 25.67 in 2013. The number of days credit given to debtors in 2012 was 15 days and in 2013 it has decreased to 14 days, this is most likely due to a decrease in its credit control.

Liquidity
Tesco’s Current Ratio has increased from 1.93 in 2012 to 2.12 in 2013. This can be seen as Tesco’s Short term liabilities have been down warded from £m 6.386 in 2012 to £m 5.889 in 2013.

ACID Test RatioFurthermore the ACID Test Ratio indicates that Tesco’s liquidity has improved from 1.37 in 2012 to 1.48 in 2013. This shows that Tesco had a growth in near liquid assets relative to its short-term liabilities....

References: Conclusion
Comparing the profitability & efficiency year on year (2013) for both companies, there is an indication to their annual performance difference

...﻿Report
To: Potential Investors
From: An Accountant
Date: 12/12/2013
Subject: Analysis of Financial Statements
This report will focus on two representative fashion companies in UK. They are Burberry and Ted Baker. Both of them listed on London Stock Exchange and belongs to personal goods industry. Burberry is a global luxury brand which operates in the luxury goods manufacture, retailer and wholesales segments. The company mainly operates in Europe, Asia, Australasia and Americas and provides non-apparel accessories and clothing for adults and children. Ted baker is a creative global luxury brand. Similarly, Ted Baker also provides accessories and clothing for adults and children. They mainly operating in UK, Asia, Australasia and America. We will evaluate the performance of each of them and give advice to potential investors. In this report, “2009” means the year ended 31 march 2009 in Burberry. “2009” means the year ended 31or 30 January 2009 for Ted Baker.
1. The profitability (performance)
We will use four main ratios to evaluate their profitability. Firstly, the Gross profit margin. During 2009 to 2011, the gross profit margin for both of them has been improved, especially in Burberry from 55.41% to 67.26%. In terms of net profit margin, the performance for Ted Baker has increased stably, but the performance for Burberry fluctuates dramatically as its operating profit is negative in 2009. Although the net profit margin goes up...

...
Contents
Section 1
Divisional Analysis
On the basis of the tabulated data as shown below, the divisional analysis indicates that Stellex Engineering is the best performing division; however per the management, it is the worst performing division for giving results only little above the previous year’s sales when it was not taken over by Waldron. The budgeted figures were higher than the actual figures. The gap is due to the change of management, which implies that appropriate overhead costs were not incurred to integrate this division with the company. The sales of Durafit division have reduced by 7.7% with a corresponding reduction in the profits of the division. This can be attributed to the increasing costs of manufacturing and distribution for Durafit despite the shift to Far East Company in terms of outsourcing the supplies to a cheaper source. Another reason can also be the shift of focus in terms of funds and resources to the division “Elite”. The sales have increased by 58% and the profits have increased by 43%. The Just – in – time distribution strategy to ensure appropriate levels of stocks for distributors has led to increased costs of maintaining finished goods in order to meet the demand as soon as it is raised. This has resulted in increased costs of maintaining the stock levels. Therefore, an analysis is required to enable the forecasting of the stock...

...and this information must reach to the concerned persons directly. They require financial analysis carried out weekly or monthly at least.
Availability of funds is prerequisite to start any business. Most important sources of funds available to the organization are,
* Equity capital- owner’s own saving
* Long-term Loan, borrowed for period of five years or more
* Short-term loan, borrowed for (1-4) years
1. Sources of Finance
There are various sources of Finance for a business which can be categorized as External and Internal sources of Finance.
1.1 Internal sources of Finance:
These sources do not require the agreement of any other person, party or organization formally such as retained profits. The directors can use those profits in the company without the permission of shareholders.
1.2 External sources of Finance:
These financial sources require the agreement of some outsiders or beyond the Directors and company management. This type of finance adopts the shape of new share in which they require the agreement of potential shareholders.
1.3 Permanent source of Finance:
To get a good understanding of External sources of Finance, it is probably helpful to explain Long Term and Short Term External sources of Finance. Long term Finance can be explained as a source of income which is due for...

...﻿FINANCIAL STATEMENTANALYSIS OF
ALPHA CONTRACTORS, INC.
Presented to
Mr. Abdul Mojeb A. Pangumpig
Accountancy Department
College of Business Administration and Accountancy
Mindanao State University
Marawi City
In Partial Fulfillment
of the Requirement of the Course
Accounting 13 (Financial Accounting and Reporting)
First Semester, A.Y. 2014-2015
Presented by
Dianoden N. Ali
Rania M. Ampuan
Abdul Jamil P. Balua
Abegael T. Longaquit
Dan Mae Shell N. Tano
Zyra Lou O. Tiongson
September 2014
ACKNOWLEDGEMENT
This study would be impossible without the help of our Acctg13 (Financial Accounting) Instructor, Mr. Abrdulmojeb A. Pangompig, our friends and our families. This study shows not only my effort and hard work, but of the people as well who were always at our side during the conduction of this study, and without their support financially and emotionally, their encouragement and suggestions, we would not have made it until the end.
I would like to thank all of you, our friends, and our families. Prof. Abdulmojeb Pangompig, our subject instructor who helped us to find direction of our study. To our friends especially to our roommates who always gives me strength and inspiration. Our classmates whom we asked every time we had confusion about our study and whom we spent our overnight with. Our family for their love and support all the way. Above all, to the Almighty God, for His unending love, guidance, and for giving me...

...
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Assignment
On
“A Business Analysis of Square Pharmaceutical Ltd.”
Course Title: Financial StatementAnalysis
Course code: ACT-513
Assignment on
“Business Analysis of”
(Square Pharmaceutical Ltd)
Submitted to:
Mr. Mohammed Sakhawat Hossain
Assistant Professor
Faculty of Business and Economics
Daffodil International University
Submitted by:
Mujahed Hossin 113-14-588 Mortazur Rahman 113--14-587
S. M. Mahedi Hasan 121-14-688
Raihanul Haque 121-14-689
Submission date:
August 23th, 2009
DAFFODIL INTERNATIONAL UNIVERSITY
Letter of Transmittal
August 13, 2012
Mr. Mohammed Sakhawat Hossain
Assistant Professor
Faculty of Business and Economics
Daffodil International University
102, Sukrabad, Mirpur Road, Dhanmondi
Dhaka-1207.
RE: Submission of assignment on “A Business Analysis of Square Pharmaceutical Ltd.
Dear Sir,
With due earnest honor, we are the students of MBA, have the pleasure to completing and submitting the assignment on “Submission of assignment on “A Business Analysis of Square Pharmaceutical Ltd.”Here, we have analyzed how Square Pharmaceutical Ltd. Manage it’s working capital and use it by observing the low years annual reports.
This exercise was interesting as well as source of huge practical knowledge for us. We got the great...